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9-686-093
ROGER BOHN
Kristen's Cookie Company (A)
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REV: JULY 13, 2006
Illustration by Jane Simon
Business Concept
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You and your roommate are preparing to launch Kristen’s
Cookie Company in your on-campus apartment. The company
will provide fresh cookies to hungry students late at night. You
need to evaluate the preliminary design for the company’s
production process in order to make key policy decisions,
including what prices to charge, what equipment to order and how
many orders to accept, and to determine whether the business can
be profitable.
No
tC
Your idea is to bake fresh cookies to order, using any combination of ingredients that the buyer
wants. The cookies will be ready for pickup at your apartment within an hour.
Several factors will set you apart from competing products such as store-bought cookies. First,
your cookies will be completely fresh. You will not bake any cookies before receiving the order;
therefore, the buyer will be getting cookies that are literally hot out of the oven.
Second, like many Boston-based area ice-cream shops, you will have a variety of ingredients
available to add to the basic dough, including chocolate chips, M&M’s, chopped Heath bars, coconut,
walnuts, and raisins. Buyers will telephone in their orders and specify which of these ingredients
they want in their cookies. You will guarantee completely fresh cookies. In short, you will have the
freshest, most exotic cookies anywhere,...

...﻿Case Study: Kristen’s Cookie Company
Key questions to answer before you launch the business:
1) How long will it take you to fill a rush order?
If the order is one dozen, the flow time will be 26 minutes for the first order. (Order entry = 0 mins / Wash and mix = 6 mins / spooning = 2 mins / heating oven = 1 min / baking it = 9 mins / removing the cookies = 0 minute / cooling them = 5 minutes / collecting them = 3 minutes)
2) How many orders can you fill in a night, assuming you are open four hours each night? (4 hours = 240 minutes)
The first step in this analysis is to convert all of the projected times into the same measure of units so that we can compare the 4 hours to the amount of time it takes to run through the process. Because the process is measured in minutes, we converted the allotted time of 4 hours into 240 minutes (4x60 min = 240). The next thing that we realized was that after the first batch, which takes 26 minutes, it only takes 10 minutes to process the cookies for each subsequent batch. So in order to calculate how many orders can be filled in the 4 hours that you have available each night, we take the 240 minutes and subtract the initial 26 minutes and then divide that number by ten. Once you have that number of 21.4 you want to add one to that to account for the first initial batch that you subtracted so that number comes out to 22.4 orders. Since you cannot produce 0.4 of an order, we round that number to 22...

...an order of 2 dozen cookies is 36 minutes.
An alternate way to compute the theoretical flow time is using the concept of bottleneck resources (discussed in Chapter 5). Oven is the bottleneck resource with 10 minutes of activity per dozen cookies. Observe that the first dozen goes into the oven at the end of 8 minutes. The second dozen will go into the oven 10 minutes after the first dozen. Therefore, the theoretical flow time of the second dozen = theoretical flow time of the first dozen + activity time at the bottleneck = 26 + 10 = 36 minutes. Similarly, theoretical flow time of 3 dozen = theoretical flow time of the first dozen + 2 * activity time at the bottleneck = 26 + 2*10 = 46 minutes.
Figure TM-4.2: Gantt Chart for Kristen’s Cookie; order size = 2 dozen.
1. With two ovens, the baking of the two dozen can be overlapped. So You can spoon the second dozen into another tray by the 10th minute. At this time, the RM is ready to load the second oven. The second oven will finish baking the second dozen by the 20th minute. The first dozen is out of the oven at the 18th minute after which it cools for 5 minutes and then the RM packs them in 2 minutes finishing at 25th minute. By this time, the second dozen has cooled and ready to be packed which takes another 2 minutes. Payment and delivery takes another 1 minute finishing the order in 28 minutes.
2. With one big oven, both trays get loaded into the oven at the end of the10th minute. The timer is set...

...﻿Home-Style Cookies Case
1. Briefly describe the cookie production process.
The company uses batch processing system, wherein the process begins when the management gets orders from its distributors. Production schedules are then made which are based on the orders received. In the beginning of every shift, a list of the cookies to be made that day is delivered to the person in charge of mixing. The ingredients needed are activated through a master list containing all the ingredients to ensure accuracy. The ingredients are then transferred to the mixers then to a cutting machine. After that, the cookies are heated to an oven and moved to a cooling rack. When the cookies are all cooked, they are manually packed. Lastly, the packaged cookies are labelled and sealed.
2. What are two ways that the company has increased productivity? Why did increasing the length of the ovens result in faster output rate?
First, the company has increased productivity by cutting the non-filled cookies diagonally, so more cookies can be baked any time. Second, automating the ingredients lead to reduction in the waste of ingredients and helps on the cut back with human error when mixing the ingredients. Increasing the length of the ovens result in faster output rate since it enables more cookies to be baked at once. The bigger the oven, the more cookies we can bake in it which means the faster the output rate.
3. Do you think the company is making the right decision...

...Case: KRISTEN’S COOKIE COMPANY
The case described about Kristen’s cookie company which provide freshly made cookies with variety of
ingredients available to add to the cookies. The company is established in the on campus apartment.
The cookies are made by 2 people, using a standard dough mixing equipment, tray and the apartment
oven. Below is the explanation and evaluation of the preliminary process design in making and selling
the cookies to the customers. Kristen’s cookie company promises that the cookies will be ready for pick
up within an hour.
1. The analysis of the processing operations at Kristen’s cookies:
The process is shown in the process flow below:
wash
mixer,
add
ingredien
ts & mix
•3
dozens
• 6 mins
put
dough
into the
tray
• 1 tray
/dozen
•2
mins/tray
put in
oven, set
timer
• 1 tray
/baking
in the
oven
• 1 min
baking
9 mins
cooling
5 mins
packing
2 mins
accept
payment
a. The total time to produce 1 dozen of cookies is= 6+2+1+9+5+2+1 = 26 minutes
b. The total baking time is 10 minutes
c. The output from mixing is for 3 dozens of cookies while the oven’s capacity is only for 1 dozen
for every baking process.
2. The bottleneck operation:
The capacity of the operation in making cookies is based on the output of the bottleneck. The
bottleneck operation is baking the cookies in the oven, which can process 60min/(1+9) min = 6
dozen orders per hour. This assumes one dozen order...

...KRISTEN’S COOKIECASE
FOR
DR. JUN-YEON LEE
MGMT 6355
FALL 2010
BY:
AMIN DADWANI
KRISTEN’S COOKIE COMPANY
INTRODUCTION:
A couple of students, roommates, planned to launch a cookie company in there on campus apartment. The purpose was to serve freshly baked cookies to
hungry students late night by taking orders online.
They needed following equipments and ingredients in process of making
Cookies: -
1-Equipment: - Oven, Food processor, Cooking tray, Spoons.
2-Ingredient: - Dough, Chocolate chip, M&amp;Ms, Chopped health bars, Coconut,
Walnut, &amp; Raisins.
The cost of ingredient is $0.60 a dozen and $0.10 for a delivery box for a
Dozen. In variable cost landlord bears the electricity charges. Considering
The wage of self and roommate, we assume that they charges $10.00 an
Hour.
Procedure of making Cookies: -
1- Add ingredient in a cleaned mixing bowl according to the customers demand.
2- Spoon the cookies in cookie tray.
3- Heat the oven and put the tray in it.
4- let it bake.
5- Take out the tray and put it aside to cool.
6- Pack the cookies for delivery.
1-How long will it take to fill the rush order?
This can be easily understood by following Flow Chart and a diagram.
0 minute in taking order on e-mail.
6 minutes in cleaning the mixing bowl and mixing the ingredients....

...Case Report : Kristen’s Cookie Company (A1)
[pic]
Key Questions
1. To know the time it will take us to fill a rush order, we have to know how many dozens the rush order requires. If it is only one dozen, we need 6 minutes for the washing and mixing steps, 2 minutes for the spooning, 10 minutes for the whole baking, 5 minutes to cooling down, 2 minutes for the packing and 1 minute for the payment. That is to say : 26 minutes.
If we consider the order requires N dozens : we always need the first 8 minutes to do the washing and mixing steps and the spooning. As long as the oven can only contain 1 dozen, we need 10xN minutes for the baking of all of the N dozens. I can use the time my roomate needs to bake 1 dozen to produce new cookies (washing + mixing + spooning) if the next dozen order requires a different flavour or if I already made 3 dozens. Finally, my roomate can use the 9 minutes of each baking (except the first one) to do the cooling packing and payment of the previous dozen order. That is why, the time needed to fill a rush order of N dozens is : 8 + 10xN + 5 + 2 + 1 = 16 + 10xN minutes.
2. We assume we are open 4 hours each night. Using Question 1, we know we need 16 + 10xN minutes to fill a N dozens rush order. We want to maximize N knowing we have to have 16 + 10xN < 240. We easily find N = 22. We can fill 22 orders in a night.
3. For me : I only wash the mixer, mix ingredients and spoon the cookies that is why...